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Q.Can a binding contract be formed through E-Mail?
A.Yes. Many courts have ruled that a series of emails, when taken together, can create a legally binding agreement that contains all of the essential terms of the contract. If an e-mail, or a chain of e-mails, clearly sets forth an offer to enter into a deal with all of the material terms (subject, obligation, price/consideration and date/time for performance), and the other side responds by e-mail accepting the terms, then there is a good chance that a valid contract has been formed even if no signatures have been exchanged.
In evaluating a communications medium as a means of forming a written contact, courts have focused on two factors: (1) can the communication be converted to a printed, tangible form and (2) does the mark made to signify a signature indicate the sender intended to bind him or herself to a written contract? Where both of these features exist and other traditional contract requirements are met, courts tend to conclude that a binding contract was made, whether by ink or electronically.
If you only intend to negotiate a deal via e-mail, make sure your e-mail specifically states that this e-mail exchange merely constitutes a negotiation and that no deal will be struck until the parties execute a formal written and signed agreement. You should also consider adding a disclaimer below your typed name that your "signature block" is for contact purposes only and is not to be construed as a legally binding "signature."
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